By Jon Peterson
Pasadena, Calif.-based Alexandria Real Estate Equities has acquired a 12.7-acre site slated for future development in San Carlos that includes a former Kelly-Moore Paint facility totaling 26,738 square feet for $113.25 million, according to the information stated by the company in its first-quarter 2020 earnings report.
The site that was purchased is located at 975-1075 Commercial Street and 915-1063 Old Country Road. Alexandria closed on this purchase in the middle of April of 2020. The potential future development of this asset is projected to be 700,000 square feet, as stated by the company in public documents associated with the end-of-quarter filing.
It is not known at this time when Alexandria will start construction on this site, and it did not disclose the full development cost. Once it does, the publicly traded REIT would state the total estimated development costs and related yields on the development.
The site that was just acquired is part of a 25-acre assembly that Alexandria has put together across the Peninsula city of San Carlos. The other parts of the project are located at 900-980 Industrial Road, 900-1098 Commercial Street and 1000-1065 Old Country Road. The 500,000 square foot first phase of the project is now under construction. It has been well received, and 56 percent of this phase was pre-leased, as stated by Alexandria in a conference call for the 2020 first-quarter earnings report.
The project is in close proximity to downtown San Carlos and US Highway 101, one of the main transportation arteries of the Bay Area. The development is also not that far away from public transportation. It would take a three-minute drive from the site to the parking lot in San Carlos for Caltrain.